Question
11% Debentures H Ltd will mature after 7 years. The debentures have been issued at $1000 and currently selling at 973.60. If the tax rate
11% Debentures H Ltd will mature after 7 years. The debentures have been issued at $1000 and currently selling at 973.60. If the tax rate is 40%, find the cost of debenture capital of H Ltd.
Group of answer choices
6.94%
11.57%
8.09%
8.10%
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
